Michael's Furniture Store buys a table at a wholesale price of $89.00. If the markup rate at Michael's Furniture Store is 85%, what is the total markup for the table in dollars?
Explanation: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $85\%$ is equivalent to $\frac{85}{100}$ which is also equal to $85 \div 100$ $85 \div 100 = 0.85$ Now you have all the information you need to use the formula above! $0.85$ $\times$ $$89.00$ $=$ $$75.65$ The amount of markup on the table is $$75.65$.